On December 6, the Enforcement Directorate arrested two Axis Bank managers in the bank's Kashmere Gate branch and seized 3 kg gold bars in connection with its money laundering probe in a racket of illegally converting old notes in connivance with banking authorities.

Shares of Axis Bank shed over 7 per cent after country's third biggest private sector lender's September quarter net plunged by 83 per cent to Rs 319 crore due to spike in provisions as its asset quality deteriorates.

"The bank has decided to reduce the MCLRs (marginal cost lending rate) of the bank by 5 basis points across all tenors. This will be effective from October 18, 2016," the bank said in a regulatory filing.

The Bank has signed a share purchase agreement with IFCI for acquisition of 73,28,334 equity shares (13.67 per cent of total outstanding shares) of face value of Rs 10 per share in Assets Care and Reconstruction Enterprise from IFCI at Rs 31 per share, resulting in a total cash consideration of Rs 22.72 crore, Axis Bank said in a release.

Shares of Axis Bank rose nearly 3 per cent to hit its seven-month high after the Reserve Bank allowed the private lender to raise foreign shareholding to up to 62 per cent, from the earlier limit of 49 per cent.

Finance ministry officials are running against time to meet their disinvestment and fiscal deficit targets. The Election Commission is expected to announce the dates of the general election in the third week of February. Once these are set, all kinds of restrictions will kick in.

Interest rate would be linked to Consumer Price Index (CPI). Rate would comprise two parts-fixed rate (1.5 per cent per annum) and inflation rate based on CPI. The same will be compounded in the principal on half-yearly basis and paid at the time of maturity.